The block of eight apartments, expected to cost as estimated $2,335,000 to build according to the development application, was approved in January.

“You don’t get many blocks [that already have DA approval here] they’re as rare as hen’s teeth, which is why there was such high demand,” Mr Recep said.

“[The vendor’s] intention was to develop [the block] but in the meantime they found something else to develop.”

Prior to selling last year the house had been owned by the one family for about 60 years, said Mr Recep.

But its medium density residential zoning combined with its proximity to the University of New South Wales, Randwick Racecourse, Centennial Park and the new light rail, meant it quickly drew the attention of developers.

Mr Recep said the new owner planned to stick to the existing approved plans for a four-level apartment block – with a mix of one, two and three bedroom apartments – with basement parking for 10 vehicles.

While it was a big gain, selling agent Martin Farah of N G Farah said the house would have cost the owner more than $200,000 in stamp duty, development application fees and holding costs.

With new draft planning controls in place for Kensington and Kingsford, Mr Farah noted there was strong demand for properties in the area which had development potential.

“The area is changing, and a lot can happen with development,” he said.

Mr Farah added there was also strong interest for investment opportunities and noted a block of six apartments in Kingsford had sold for $1.6 million above reserve last month.